Money Mar­ket Re­port for the week end­ing 28 Septem­ber

The Malta Business Weekly - - MARKETS -

ECB Mon­e­tary Op­er­a­tions

On 24 Septem­ber, the Euro­pean Cen­tral Bank an­nounced its weekly main re­fi­nanc­ing op­er­a­tion. The op­er­a­tion was con­ducted on 25 Septem­ber and at­tracted bids from euro area el­i­gi­ble coun­ter­par­ties of €6.43bn, €1.47bn higher than the bid amount of the pre­vi­ous week. The amount was al­lot­ted in full at a fixed rate equiv­a­lent to the pre­vail- ing MRO rate of 0.00%, in ac­cor­dance with cur­rent ECB pol­icy.

On 26 Septem­ber, the ECB con­ducted a three-month, longert­erm re­fi­nanc­ing op­er­a­tion to be set­tled as a fixed rate ten­der pro­ce­dure with full allotment, with the rate fixed at the aver­age rate of the MROs over the life of the op­er­a­tion. The op­er­a­tion at­tracted bids of €1.26bn from euro area el­i­gi­ble coun­ter­par­ties. The amount was al­lot­ted in full in ac­cor­dance with cur­rent ECB pol­icy.

Also on 26 Septem­ber, the ECB con­ducted a seven-day US dol­lar fund­ing op­er­a­tion through col­lat­er­alised lend­ing in con­junc­tion with the US Fed­eral Re­serve. This op­er­a­tion at­tracted bids of $0.07bn, which was al­lot­ted in full at a fixed rate of 2.67%.

Do­mes­tic Trea­sury Bill Mar­ket

In the do­mes­tic pri­mary mar­ket for Trea­sury bills, the Trea­sury in­vited ten­ders for 92-day bills for set­tle­ment value 27 Septem­ber, ma­tur­ing on 28 De­cem­ber. Bids of €55m were sub­mit­ted, with the Trea­sury ac­cept­ing €18m. Since €23m worth of bills ma­tured dur­ing the week, the out­stand­ing bal­ance of Trea­sury bills de­creased by €5m, to stand at €325.5m.

The yield from the 92-day bill auc­tion was -0.354%, un­changed from bids with a sim­i­lar tenor is­sued on 20 Septem­ber, rep­re­sent­ing a bid price of €100.0905 per €100 nom­i­nal.

Dur­ing the week un­der re­view, there was no trad­ing on the Malta Stock Ex­change.

This week the Trea­sury will in­vite ten­ders for 28- and 182-day bills ma­tur­ing on 1 Novem­ber and 4 April 2019, re­spec­tively.

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